Nominations for President-elect Donald Trump’s cabinet suggest a forthcoming emphasis on deregulation and employer-friendly policies, which could reshape the legal landscape for businesses and workers alike. Changes to various agencies like the Department of Labor, the National Labor Relations Board, and the Equal Employment
Opportunity Commission are likely and have far-reaching implications for employers.
Wage and hour issues, worker classification, paid family leave, and workplace safety have been prominent in the labor and employment landscape over the past few years. What can employers expect to see over the next four years?
Minimum wage
In previous debates, President-elect Donald Trump has mentioned he was open to increasing the federal minimum wage from $7.25, with the caveat that it does not hurt small businesses. However, during the 2024 campaign, he did not mention increasing the federal minimum wage.
Tips
Trump has proposed eliminating federal income taxes on tips. Currently, workers are required to pay individual income taxes and payroll taxes on tips.
Overtime
The Biden administration has tried to expand overtime coverage over the past four years. It is unclear whether or not Trump intends to continue to try to expand overtime coverage or not.
Independent Contractors
Millions of U.S. workers use a gig economy by mixing short-term jobs, freelancing, and contract work to support their lifestyles. Under the Biden Administration, the Department of Labor issued a rule that changed the classification of workers from independent contractors to employees. The incoming Trump administration will likely relax this rule from the Department of Labor for gig-worker classification
Paid Family Leave
Paid family leave is expected to remain an issue for the states. The United States is the only industrialized nation that does not mandate at least some paid leave to manage illness or for the birth of a child. Employers at the moment are still expected to comply with a conglomeration of local and state paid leave regulations.
Relaxed Workplace Safety Measures
Trump’s previous administration saw a record-low number of OSHA inspectors. This decrease in inspectors resulted in an overburdening of inspectors, ultimately reducing OSHA’s ability to find and remediate workplace safety violations. A similar reduction in inspectors can be expected in the next 4 years.
Additionally, OSHA has a proposed heat safety rule that was set to take effect in 2025. However, this rule may be scaled back dramatically or scrapped altogether.
As President Trump’s cabinet nominations take shape, the potential shifts in labor and employment policy signal a transformative period for both employers and employees in 2025. From deregulation efforts to new interpretations of workplace protections, these appointments are poised to reshape the legal framework governing labor relations. Employers should keep a close watch on developments, as changes to regulatory enforcement and compliance requirements could have substantial impacts on their operations and workforce management strategies.
As always, Lockaby PLLC remains dedicated to helping clients navigate these shifts and ensuring they remain compliant. We encourage businesses to stay proactive and informed. Remember, we’re here to support your business as these changes unfold.
